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M&S Overhauls Supply Chain to Double Online Fashion Sales

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Marks & Spencer (M&S) is overhauling its fashion supply chain from “factory to floor” as part of a major strategy to double its annual online fashion, home, and beauty sales to nearly £3 billion ($4 billion). John Lyttle, who took charge as Managing Director for Fashion, Home, and Beauty in March, said the revamp aims to make M&S a fully omnichannel retailer by modernizing how products are sourced, stored, and delivered to customers. The move follows a strong recovery after an April cyberattack that disrupted online operations and caused around £300 million in losses.

The 141-year-old retailer is investing £120 million in automation to improve efficiency and resilience across its operations. Lyttle emphasized that simplifying logistics and strengthening supply chain partnerships—particularly with factories in Asia and Europe—will help reduce costs and ensure smoother product flow. He noted that M&S has already improved its reputation for value, quality, and style, with fashion, home, and beauty sales rising 9% over the past three years and its market share climbing to 10.5%.

M&S plans to deepen long-term supplier relationships to secure consistent product availability amid global trade challenges. The company also aims to increase online’s share of total non-food sales from 34% to 50% in the coming years. Investors see the shift as a major growth opportunity, with experts saying the modernized supply chain could enhance margins and cement M&S’s position as a leading online and in-store fashion retailer in the UK.

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Nexperia Chip Shipments Resume Amid Easing Trade Tensions

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Semiconductor maker Nexperia has restarted some chip deliveries after weeks of disruption caused by a dispute between the Netherlands and China over technology transfers. German officials welcomed the signs of “de-escalation,” expressing hope that temporary permits would soon restore supply to Europe’s major automotive industry.

Germany’s Aumovio has secured exemptions from Chinese export controls, becoming the first supplier to confirm resumed access to Nexperia chips. Honda also reported progress, saying shipments in China had begun and production at affected plants in North America could restart as early as next week, though uncertainty remains.

Nexperia, which is Chinese-owned but headquartered in the Netherlands, produces essential components for car electronics. Suppliers had warned they might furlough workers if shortages continued. While Nexperia expects product flows to normalize soon, European automakers like Volkswagen remain cautious, warning that chip constraints could still threaten output into 2025.

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Production of Duvel beer hit by cyber-attack

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A cyber-attack has brought production to a standstill at four breweries under the ownership of Duvel, a prominent Belgian beer company. The attack, suspected to be ransomware, occurred overnight between Tuesday and Wednesday, causing significant disruption to operations. Initially, five production facilities were affected, with only one managing to resume operations thus far.

In response to the attack, Duvel promptly activated its IT systems’ built-in command systems and alarms. These measures allowed the company’s IT department to swiftly detect the intrusion and shut down servers to mitigate further damage. Despite these efforts, production at the four Belgian production sites and one in Kansas City remains halted.

Duvel, known for its iconic brands such as Chouffe, Vedett, and Liefmans, has been a stalwart in the beer industry since its establishment in 1871. In 2022, the company reported revenue of €583 million and produced approximately 230 million liters of beer. However, the extent of the impact on the supply chain and distribution of its products following the cyber-attack remains uncertain.

The company has disclosed to local media that the incident is indeed a ransomware attack, a type of cyber-attack where hackers threaten to block or leak files unless a ransom is paid. As investigations into the attack continue, Duvel faces the challenge of restoring production at its affected facilities while ensuring the security and integrity of its IT systems against future threats.

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Carrefour to halt Pepsi sales over price rises

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French supermarket giant Carrefour has announced its decision to cease selling Pepsi products in its stores due to what it deems “unacceptable price increases.” The move, affecting items like Pepsi soda, Doritos, and Quaker cereals, was communicated to customers through signs displayed in stores. Pepsi has expressed its commitment to continuing negotiations in “good faith” despite the disagreement.

The disagreement arises amid France’s struggle with rapidly increasing food prices, as indicated by a recent report showing a 7.1% rise in food prices in December compared to the previous year. French Finance Minister Bruno Le Maire has been urging major food companies to lower prices and has even threatened special taxes on what he considers “undue” profits. The government has accelerated the deadline for price negotiations between food companies and supermarkets in an attempt to address the issue.

Pepsi, citing rising costs, has implemented price increases in recent years, with expectations of further hikes in 2024. The company has also faced criticism for “shrinkflation,” reducing product sizes without corresponding price decreases. Carrefour, as the second-largest grocer in France, has been notably resistant to this practice and, in September, displayed signs highlighting “shrinkflation” on certain products, including Lipton Ice Tea, a Pepsi brand.

Carrefour’s decision to no longer sell Pepsi products is accompanied by notices explaining the move as a response to “unacceptable price increases.” Despite this decision, existing Pepsi products on the shelves will still be available for purchase by French consumers. Pepsi has stated that discussions with Carrefour have been ongoing for months, and they remain committed to finding a resolution to ensure their products’ availability.

While public disputes over pricing are unusual, they are not unprecedented. In 2022, Tesco clashed with Kraft Heinz over price hikes for staples like baked beans and ketchup. Similarly, German grocers Edeka and Rewe halted sales of certain Mars products, citing price increases. Edeka also faced a dispute with Pepsi in the previous year, and a standoff between Mondelez, the maker of Milka chocolate, and Belgian supermarket Colruyt resulted in a supply gap last year.

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